China’s tax revenue rose 0.6% in 2022 from a year earlier, slowing sharply from a 10.7% rise in 2021 due to huge business tax cuts to support a COVID-ravaged economy, data showed on Monday. of the Ministry of Finance.
Tax revenue amounted to 20.37 trillion yuan (US$3.02 trillion) last year, while expenditure reached 26.06 trillion yuan, growing 6.1%, the ministry said in a statement. The result was a deficit of 5.69 trillion yuan.
Revenues increased 9.1% in 2022, after adjusting for the effects of value-added tax (VAT) credit refunds, according to the ministry.
The world’s second largest economy grew 3% in 2022 compared to the previous year, thus missing the official target of close to 5.5% and reaching one of its worst rates in almost half a century. Growth is expected to pick up to almost 5% in 2023 as Beijing got rid of tough restrictions covid in early December.
China will appropriately expand fiscal spending in 2023, set a reasonable amount of special local government bonds to boost investment, and improve tax and fee policy to support struggling enterprises, the ministry said.
Tax and fee cuts, tax rebates, and deferred payments of China they totaled 4.2 trillion yuan in 2022, including 2.4 trillion yuan in VAT tax rebates, the highest in recent years, the ministry said.
Amid a protracted housing crisis, public revenue from land sales plummeted 23.3% in 2022.
tax revenue from China rose 61.1% in December from a year earlier, while fiscal spending rose 3%, according to Reuters calculations based on official data.
Source: Reuters
Source: Gestion
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